SOCO Vietnam Abandons VN-1X & Sees Promise in TGD-1X

SOCO Vietnam reports that the Voi Nau (VN-1X) well, the first well on Prospect "AA" in Block 16-1, will be plugged and abandoned after reaching a total depth of 3,130 meters.

The well was drilled on a four-way closure to evaluate the Oligocene section that was productive in Voi Trang. While the well encountered oil shows, the sands were poorly developed and had insufficient porosity to warrant testing.

Following this well, the GSF Adriatic XI jackup will return to the Te Giac Den 1X ("TGD-1X") well on Prospect "E." As announced on July 30, 2007, the TGD-1X well encountered hydrocarbons in two Oligocene clastic sequences, which were separated by a volcanic layer. Well logs over the upper sequence indicated approximately 30 meters of net pay. After drilling through the volcanics, the well also encountered a deeper high-pressure clastic sequence with oil and gas shows. A further 300 meters of sediment is interpreted above the Basement.

Although equipment is now assembled that would enable the section above the volcanics to be tested, detailed analysis of the well, including the benefit of drilling with the high pressure blow out preventer, testing multiple high pressure zones and the extent of the potential formation damage, has supported a decision to re-drill the entire section and conduct a single testing program.

"We are particularly excited to return to the TGD structure," said Ed Story, president and chief executive of SOCO. "Success in the deeper objective section of this structure could totally transform this company and represent a significant milestone in the history of oil exploration in Vietnam. Accordingly, we are quite anxious to resume our evaluation now that we have assembled the proper high pressure drilling equipment."

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